On December 31, 2015, a franchise that is owned by United Corporation, an ASPE company, has a remaining life of 33 years and a carrying amount of $700,000. Management estimates the following information about the franchise:

Fair value$640,000Disposal costs44,000Discounted cash flows (value in use)650,000Undiscounted future cash flows850,000

Please make sure your final answer(s) are accurate to 2 decimal places. a) Determine if the franchise was impaired at the end of 2015 and prepare the journal entry, if any. Enter an appropriate description, and enter the date in the format dd/mmm (ie. 15/Jan).

General JournalPage G7DateAccount/ExplanationPRDebitCredit

b) Assume now that the undiscounted cash flows were $650,000. Determine if the franchise was impaired at the end of 2015 and prepare the journal entry, if any. Enter an appropriate description, and enter the date in the format dd/mmm (ie. 15/Jan).

General JournalPage G3DateAccount/ExplanationPRDebitCredit

c) Assume now that the franchise was estimated to have an indefinite life and last into perpetuity. Determine if the franchise was impaired at the end of 2015 and prepare the journal entry, if any. Enter an appropriate description, and enter the date in the format dd/mmm (ie. 15/Jan).

General JournalPage G1DateAccount/ExplanationPRDebitCredit